The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has set legislative restrictions designed to limit purchases of complex financial instruments to qualified investors, and has updated the relevant list to cover depositary receipts (GDR/ADR) alongside other instruments. The amended list includes derivative securities and other derivative financial instruments, as well as instruments whose issuance terms specify they are not intended for retail investors. While depositary receipts are treated as complex instruments due to their structure and risk features, the changes do not impose a blanket ban for retail investors, who may access them by obtaining qualified investor status through their broker. For individuals, qualification can be based on criteria including finance or economics higher education, CFA, FRMC or CIIA certification, relevant work experience, assets of at least 8,500 monthly calculation indices (around KZT 30 million), or a recent trading record of at least 50 transactions in the last 12 months; investors not meeting these criteria may be assessed via broker testing, and if the required score is not achieved, purchases are permitted only after the investor signs a broker risk disclosure. These qualification conditions do not apply to legal entities.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-01-31
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan adds depositary receipts to complex instruments restricted to qualified investors
Kazakhstan's Financial Market Agency has restricted complex financial instruments, including depositary receipts, to qualified investors. Retail investors can access these by meeting criteria like education, certifications, experience, asset thresholds, or trading history. Legal entities are exempt from these conditions.